This paper empirically examines the historical allegation of fraudulent behavior of bank management by scrutinizing the balance sheet of individual bank and finds none of the Illinois free banks was without specie reserve. Applying econometric tools to balance sheet items, this paper identifies...

The study derives the closed-form solution of the valuation of deposit insurance under forbearance for banks whose capital requirements are either solely based on the 1988 Basel Accord (BA) approach or the VaR-based approach. The study also demonstrates that the deposit insurance liability under...

Viele Banken sind aufgrund ihrer Größe, Vernetzung und Komplexität nicht mehr abwickelbar. Geraten sie in Schieflage, stellen sie eine enorme Bedrohung für das gesamte Finanzsystem ihres Wirtschaftsraumes dar. Fünf Jahre Finanzkrise haben das Problem nicht gemildert, sondern verschärft....

This paper incorporates risk-based margin requirements into portfolio liquidation procedures in a novel fashion. The approach is analytic and, as a result, more efficient than conventional numerical liquidation methods. The margin requirement calculation is a self-contained inner optimization...

This study investigates how commercial paper rates respond to the innovations in stock market risk premiums. The unrestricted vector autoregression (VAR) analysis of monthly data from 1997:1 to 2012:M6 shows that the changes in the one-, two-, and three-month non-financial and financial...

This article characterizes the properties of the compensation scheme of delegated portfolio management that would lead to the selection of high risk-high return portfolios. In particular, it provides conditions under which a non-monotone payment structure emerges as an optimal contract, which...

Islamic banking is considered as alternative to conventional banking. It focuses on profit/loss and risk sharing, than interest based deposit/lending followed in conventional banking. Conventional Banking cherishes a long history while Islamic banking gained importance in last few decades. The...

Literature abound justifying that industrialization is a pathway to economic development and growth. Whereas linkage between financial development and economic growth has long been a subject of intense scrutiny, not much has been done to examine the link between financial development and...

Based on a sample of 87 countries, this paper shows that non-financial institutions, specifically rule of law, do matter for the relative merits of bank-based and market-based financial systems. Market-based systems work better in low rule of law countries, while bank-based systems are more...

Eine Finanztransaktionssteuer kann neben der Finanzmarktregulierung das zentrale Instrument sein, um die Finanzmärkte in Zukunft wieder robuster zu machen. Wenn sie breit angelegt ist, zielt sie auf die Eindämmung von Regulierungsarbitrage, Blitzhandel, überaktivem Portfolio-Management und...